Management Accounting Set 5
On This Page
This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 5
Q1 | Following is used as tool for Cost Control
- Marginal cost
- Historical cost
- Standard cost
- All of the above
Q2 | Management accounting assists the management
- Only in control
- Only in direction
- Only in planning
- In planning, direction and control
Q3 | Management accounting is deals with -
- Quantitative Information
- Qualitative Information
- Both (a) and (b)
- None of the above
Q4 | Which of the following is an advantage of standard costing?
- Measuring efficiency
- Facilitates cost control
- Determination of variance
- All of the above
Q5 | Which of the following is not a functional budget?
- Labour budget
- Cash budget
- Materials budget
- Expenses budget
Q6 | Which is the mostly likely purpose of budgeting?
- Planning and control of an organization's income and expenditure
- Preparation of a five-year business plan
- Company valuation
- Assess the non-financial performance of an organization
Q7 | __________ Accounting becomes a source of information for Management Accounting.
- Financial
- Cost
- Both (a) and (b)
- None of the above
Q8 | Calculate the production budget from the following data: sales 89,350 units; opening inventory 23,864 units; closing inventory 33,156 units.
- 80,058 units
- 1,46,370 units
- 32,320 units
- 98,642 units
Q9 | Fixed budget is useless for comparison when the level of activity -
- Increases
- Fluctuates both ways
- Decreases
- Constant
Q10 | The budget committee consists of -
- Managers
- Budget officers
- Creditors
- None of the above
Q11 | A budget centre is -
- Department or part of the department
- Meeting place for budget committee
- Office of the budget officer
- None of the above
Q12 | The main objective of budgetary control is -
- To define the goal of the firm
- To coordinate different departments
- To plan to achieve its goals
- All of the above
Q13 | Production budget is -
- Dependent on purchase budget
- Dependent on sales budget
- Dependent on cash budget
- None of the above
Q14 | Sales budget shows the sales details as -
- Month wise
- Product wise
- Area wise
- All of the above
Q15 | An example of long period budget is -
- R & D budget
- Master budget
- Sales budget
- Personnel budget
Q16 | The budgets are classified on the basis of -
- Time
- Function
- Flexibility
- All of the above
Q17 | Budget relating to the key factor is prepared -
- After other budgets
- With other budgets
- Before other budgets
- None of the above
Q18 | Key factor is also known as -
- Limiting factor
- Governing factor
- Principal factor
- All of the above
Q19 | In responsibility accounting system -
- Budgets are prepared
- Actual performance is recorded
- The performance is reported
- All of the above
Q20 | The responsibility accounting emphasizes the performance of -
- System
- Men
- Both (a) and (b)
- None of these
Q21 | The responsibility accounting is also called -
- Profitability accounting
- Activity accounting
- Both (a) and (b)
- None of these
Q22 | The responsibility accounting is the part of -
- Financial accounting
- Management accounting
- Mechanized accounting
- None of these
Q23 | The responsibility accounting is a controlling tool for -
- Top?level management
- Lower level management
- Middle level management
- None of these
Q24 | Which of the following system emphasizes on cost control ?
- Cost accounting
- Responsibility accounting
- Financial accounting
- None of these
Q25 | The responsibility centres come under the responsibility of -
- Cost accountants
- Management accountant
- Responsibility managers
- Auditor